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Fears of coronavirus affect the performance of safe havens

31 Jan 2020 01:08 PM

Despite the positive economic data in China released Friday morning, which came somewhat positively, with both the manufacturing and services sectors maintaining their growth for the third month in a row, the Manufacturing PMI recorded a reading of 50.0 points, while the Services PMI increased from 53.5 to 54.1 points, but the persistence of fears of the outbreak of the Corona virus after the World Health Organization announced last night to announce the maximum state of emergency due to the spread of the virus, which resulted in the death of more than 170 people, which caused the continuation of the risk aversion and a significant decline in the performance of global stocks and uniforms. The birth of demand for gold.
Gold prices continued to rise to levels of $ 1580 an ounce, and our positive expectations remain for the yellow metal in the medium term, to return again to the levels of $ 1586 an ounce. On the other hand, the suspension of many countries' flights to China and the closure of many stores in China caused the demand for fuel to decline, as oil prices retreated to levels of $ 52 a barrel, and our negative expectations remain based on heading towards levels of $ 50 a barrel.
As for the British pound trades, which witnessed strong increases yesterday evening, after only two members voted against three votes in favor of reducing interest with a positive tone somewhat dominated the interest statement accompanying the Bank of England decision after keeping the interest unchanged at 0.75% to reach sterling dollars to 1.3112 levels .
This comes at a time when the United Kingdom is preparing to officially exit today from the European Union and start a new phase of the transitional period and new agreements between them throughout the next month, to make the markets watchful anticipation of what will happen in the coming period.
Within several hours, markets are awaiting important data in Canada and the United States of America, as GDP growth in Canada is expected to stabilize during December. On the other hand, US personal consumption spending is expected to increase by 1.7% year on year versus the previous reading of 1.5%. In the event that it came better than expected, then the US dollar may witness more recovery after the negative tone of the US Federal Reserve on Wednesday, which resulted in a significant drop in the dollar index to 97.70 levels.